Cross-rate signals: EUR/GBP is near significant support

After a prolonged decline on strengthening of the optimism regarding pound and data on the Brexit negotiations, the pair EUR/GBP remains in oversold and is limited by the lower boundary of the downward channel.

Zone of significant support for this pair are: 0.8730 and 0.8750, from which one should expect the formation of a reversal with further correction. After the formation of the retreat, one should expect a test of resistance levels: 0.8790 and 0.8810-30, which correspond to the upper boundary of the ascending channel. Fixing a pair below the level of 0.8730 cancels the scenario for strengthening.

Fig. EUR/GBP. The current price is 0.8760.

Hanzenko Anton